China’s Rare Earth Moves Shake Global Trade Talks

BEIJING – China’s rare earth exports surged in May, climbing to 5,865 tons from April’s 4,785 tons, though still trailing last year’s 6,217 tons, according to customs data released Monday.

Despite the rebound, trade tensions remain high, with China’s export controls on key rare earth minerals and magnets a central issue in negotiations with the United States.

Talks in London aim to resolve long-standing disputes over tariffs and supply constraints affecting high-tech and defense industries.

According to Moneyweb, China’s latest export curbs implemented on April 4 in response to US tariffs have sent shockwaves through global supply chains.

With China accounting for nearly 70 percent of the world’s rare earth production, its export policies significantly impact markets dependent on these critical minerals.

The customs figures offer only a partial view of restrictions, as they do not include rare earth products such as high-value magnets for electric motors and hard-disk drives.

Data on these exports will be released June 18, followed by a breakdown of shipment destinations on June 20, according to South China Morning Post and Energy Connects.

China appeared to soften its stance following a May 12 announcement that both nations had agreed to ease tariffs and trade barriers.

However, Washington later accused Beijing of deliberately delaying shipments, citing long lead times in China’s permitting system.

Meanwhile, European trade officials and carmakers have raised concerns over growing supply disruptions.

With rare earths remaining a flashpoint in global trade negotiations, industry leaders and policymakers are closely watching for policy shifts that could reshape global markets and influence the future of high-tech production.